India's Modi, Brazil's Lula speak amid Trump tariff blitz
Lula confirmed a state visit to India in early 2026 during the call, which occurred a day after the Brazilian leader told Reuters he would initiate a conversation among the BRICS group of countries on tackling U.S. President Donald Trump's levies.
The group of major emerging economies also includes China, Russia and South Africa. "The leaders discussed the international economic scenario and the imposition of unilateral tariffs. Brazil and India are, to date, the two countries most affected," Lula's office said in a statement.
Trump announced an additional 25% tariff on Indian goods on Wednesday, raising the total duty to 50%. The additional tariff, effective August 28, is meant to penalize India for continuing to buy Russian oil, Trump has said.
Trump has also slapped a 50% tariff on goods from Brazil, with lower levels for sectors such as aircraft, energy and orange juice, tying the move to what he called a "witch hunt" against former President Jair Bolsonaro, a right-wing ally on trial for an alleged coup plot to overturn his 2022 election loss.
On their call, Lula and Modi reiterated their goal of boosting bilateral trade to over $20 billion annually by 2030, according to the Brazilian president's office, up from roughly $12 billion last year.
Brasilia said they also agreed to expand the reach of the preferential trade agreement between India and the South American trade bloc Mercosur, and discussed the virtual payment platforms of their countries.
Modi's office in its statement did not explicitly mention Trump or U.S. tariffs, but said "the two leaders exchanged views on various regional and global issues of mutual interest."
India is already signaling it may seek to rebalance its global partnerships after Trump's salvo of tariffs on Indian goods.
Modi is preparing for his first visit to China in more than seven years, suggesting a potential diplomatic realignment amid growing tensions with Washington. The Indian leader visited Lula in Brasilia last month. (Reporting by Devika Nair in Bengaluru and Lisandra Paraguassu in Brasilia; Writing by Isabel Teles; Editing by Hugh Lawson, Gabriel Araujo and Deepa Babington)
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